There has been a new development in the case between the U.S. Securities and Exchange Commission (SEC) and Binance.US and Binance co-founder Changpeng Zhao. The SEC is seeking to amend the section of the complaint it previously filed in response to Binance’s defense regarding third-party altcoin asset securities.
Court ruling on altcoin “securities” not required
In a joint status report filed with the Washington, D.C. District Court on July 30, the SEC reported that it is seeking to amend the altcoin securities section of the complaint it previously filed in response to Binance’s motion to dismiss the case regarding third-party crypto asset securities. The move follows the court’s July 9 ruling that the BNB token is not a security. It also noted that secondary sales of BUSD are not securities.
This provides partial relief for crypto assets listed in the SEC complaint, including Solana (SOL), Cardano (ADA), and Polygon (MATIC). However, other tokens that the SEC considers to be securities include FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI.
SEC and Binance have different views on the discovery process
Binance states that the SEC’s proposed amendment in its complaint was notified to them until 11:53 on July 29. This suggests that they are planning changes beyond the claims regarding third-party tokens. Binance also claims that the SEC added new text to the parties that incorrectly stated that they agreed to begin the discovery process after they proposed an amendment. The following statements are made:
The defendants have not agreed to begin the discovery process. They argued that they cannot begin the discovery process without seeing the SEC’s proposed amendments.
In addition, a notice was also given that Jeremy M. Christiansen will serve as defense counsel for Binance Holdings in this important case. This development could significantly affect the course of the case. If the court excludes claims related to third-party crypto assets, the chances of the SEC imposing a sanction on these tokens will decrease. However, if the SEC amends its complaint to add more charges, Binance’s defense could face a new battle.
When will the decision come?
It is not yet clear when a final decision will be made in this case, which closely concerns the cryptocurrency market in the US. However, if the SEC amends its complaint and Binance objects to this amendment, the case could be extended. The court’s decisions regarding BNB and BUSD could provide a clearer framework for the situation regarding third-party tokens. By following this case, we can see important developments in terms of legal uncertainties regarding whether cryptocurrencies are considered securities.
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